Caribbean Hotel Energy Efficiency Action Program (CHENACT) - Final Presentation Washington, DC - Caribbean Hotel and Tourism
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* Caribbean Hotel Energy Efficiency Action Program (CHENACT) Final Presentation Washington, DC October 2012
Executive Summary
CHENACT was a 3-year program funded by the Inter-American Development
Bank, European Union, UN Environment Programme, and GIZ. CHENACT
was executed by the Caribbean Tourism Organization, Caribbean Hotel and
Tourism Association, and Caribbean Alliance for Sustainable Tourism.
Detailed energy efficiency audits of various sized hotels showed savings
potential of 20-30%, with payback periods of less than 5 years (depending
upon the prevailing electricity tariffs).
Assuming an average room rate of US$100, and electricity rates of $0.40/kWh,
energy efficiency improvements would yield, over a 7 year period, the
equivalent of:
– 3,800 room nights revenue for small hotel (100 rooms)
The net revenue (total savings minus investment), would be $280,000 for small
hotel, $300,000 for medium hotel, and nearly $1 million for a large hotel over 7
years.
Page 2
Summary of Impact of CHENACT Recommendations
Barbados Hotel Sector Caribbean Region Hotel Sector
• 96 hotels and 6,114 hotel rooms • 2,269 hotels; 241,058 hotel rooms
• $16 million total investment in • $433 million total investment in
energy efficiency energy efficiency
• $10 million annual savings • $271 million annual savings
• 27 million kWh total annual savings • 1,050 million kWh annual savings
• 18,800 tons CO2e reduced annually • 835,000 tons CO2e reduced
annually
• 6,891kiloliters of diesel/HFO in
reduced imports annually • 267,970 kiloliters of diesel/HFO in
reduced imports annually
Page 3
Topics
Summary of CHENACT accomplishments
Summary of CHENACT findings
Summary of CHENACT lessons learned
CHENACT Action Plan
Page 4
CHENACT Accomplishments
Institutional strengthening
– 5 training workshops and/or conference sessions
– 20 presentations at tourism and energy conferences
Barbados Case Study
– 31 detailed energy audits, 30 walk through energy assessments (64% of all
licensed hotels in Barbados)
– Electricity efficiency index for (200 room hotels)
– Estimates of total electricity consumption and carbon footprint of Barbados
hotel sector
– Assessment of financing sources for hotel energy investment, including input
to SMART Energy Fund design, cash flow model, support to 6 hotel’s
financing plans
– Inventory of current refrigerant use in air conditioning and refrigeration
equipment in the hotel sector (performed by UNEP)
Page 5CHENACT Accomplishments (cont.)
Barbados Case Study (continued)
– Hotel Clean Energy Policy
– Support to pilot PV hotel demonstration (specifications, selection criteria,
procurement document, proposal review)
– Summary of impact of Barbados hotel EE program
– Action Plan to implement CHENACT in Barbados (and region)
Energy Performance Contracting for Caribbean Hotel Sector
– Analysis of contracting models (shared savings, guaranteed saving, power
purchase agreement, leasing/lease-purchasing)
– Benefits and pitfalls of performance contracting
– Profile of Caribbean energy services industry
– Caribbean hotel energy performance contracting market
– Caribbean hotel ESCO development strategy
Page 6CHENACT Accomplishments (cont.)
Caribbean Regional Hotel CDM Program of Activity (PoA)
– Analysis of carbon offsets and trading markets
– Analysis of CDM for building EE projects
– Analysis of applicable CDM methodologies
– Description of sample CDM Program Activity (CPA) and steps to creating a
Caribbean regional hotel EE PoA
Model Hotel Clean Energy Program for the Caribbean
– Profile of Caribbean hotel industry and electricity consumption
– Additional 17 detailed energy audits in other islands (12 audits done by GIZ)
– Model of 2,269 hotels (241,058 hotel rooms) in 25 countries/territories
– Extrapolation of EE and carbon reduction potential
– Analysis of benefits and costs of EE investment program
– Analysis of the Caribbean EE market
– Analysis of barriers to investment in hotel EE
Page 7CHENACT Accomplishments (cont.)
CHENACT Communication Strategy
– Caribbean hotel EE case studies and technology factsheets
– Content for CHENACT website
– Recommendations for communications messages and channels
– Recommended communications activities for CHENACT counterparts and
stakeholders
Page 8Topics
Summary of CHENACT accomplishments
Summary of CHENACT findings
Summary of CHENACT lessons learned
CHENACT Action Plan
Page 9Summary of CHENACT Findings CHENACT is a energy and climate change project in the tourism sector that introduced many new concepts (e.g., EE/RE technologies, performance contracting, CDM) to its principal counterparts None of CHENACT’s principal counterparts (CHTA, CTO, CAST, BHTA) have in-house permanent technical staff to advocate for and facilitate clean energy implementation in the hotel sector There is considerable variation in the EE index among similar sized hotel properties, particularly for small hotels (
Summary of CHENACT Findings (cont.)
Despite high and rising cost of electricity, investments in cost-effective EE
projects are not undertaken by Barbados hotels.
A hotel clean energy policy framework includes initiatives by multiple sectors
and entities (e.g., tourism, environment, energy, utility regulation, building and
planning authorities, finance, customs).
Over 835,000 tons of carbon-dioxide equivalent (CO2e) could be reduced
annually in the Caribbean region from hotel EE, however a CDM Program of
Activities will initially be limited to a few countries with Designated National
Authorities.
Realizing the potential value of hotel EE investments will require an integrated
approach that includes awareness, detailed analysis (audits), new
technologies, targeted financing, qualified installation, and performance driven
service providers.
Page 11Average Annual Electricity Expenditure for Barbados Hotels and
Cost Saving Through Energy Efficiency Action
1,600,000 1,514,609
1,400,000
Annual Electricity Cost and Saving (US$)
1,200,000
1,000,000
800,000 695,005
600,000
469,984
398,342
400,000
175,679 168,886
200,000 113,266
34,433
-
200
Hotel Size (# of Guestrooms)
Annual Electricity Cost Per Hotel (US$) Annual Electricity Cost Saving through EE Action
Page 12Electricity Use Index – CHENACT Benchmarks
Smaller hotels, on average, consume more electricity than larger hotels. There is
much more variation in the operations and amenities. Electricity benchmarks serve as
one way to compare the relative efficiency of a hotel.
Hotel Size (# of Guestrooms)
200
High (kWh/Guest Night) 118 87 43 50
Average (kWh/Guest Night) 43 44 32 34
Low (kWh/Guest Night) 12 18 25 22
# of Hotels 13 8 5 4
GN/RN Ratio 1.63 1.79 1.79 1.90
Guest nights (GN) are the number of occupants in a hotel
Room nights (RN) are the number of occupied rooms
Page 13Overall Electricity Consumption by End-Use
Air conditioning and lighting together account for nearly two-thirds of all the electricity
consumed in the hotel sector.
Other, 1,515,484
End-Use electricity
consumption and
Saving values in kWh
Hot Water & Laundry, Pool Pumps,
2,137,812 2,900,487
General Equipment,
2,094,139
Air Conditioning,
14,947,421
Kitchen & Refrigeration
Equipment, 4,132,546
Guestroom
Equipment,
2,885,711
AC-Electricity Saving,
Lighting,
3,836,313
3,224,459
Lighting Electricity
Saving, 1,267,807
Page 14Electricity Consumption by End-Use for Different Sized Hotels in Barbados Kitchen and Refrigeration uses more than 10% of medium and larger hotel’s (>50 rooms) electricity use. For
CFC use in the Barbados Hotel Sector
• Barbados is phasing-out hydro-chloro-fluorocarbons (HCFC) refrigerant
gases presently being used in equipment such as air conditioning
systems, freezers and refrigerators.
• HCFC R22 is the predominant refrigerant used in the hotel sector. R22
is used in 96% of the 3,300 mini-split A/C systems in the 51 audited
hotels; whereas R134a is used in 96% of hotel’s kitchen and bar
equipment. R22 has a Ozone Depleting Substance (ODS) value of
0.05, but a Global Warming Potential (GWP) of 1700 times that of
CO2e. R134a has a ODS of 0.0 and GWP of 1300.
• Only two (2) hotels use new HFC refrigerant entirely in their systems for
cooling of the guest rooms. One has five (5) R410a Chilled Water
Systems and another has R407C mini split systems cooling the guest
rooms. Four hotels still have CFC refrigerant systems at their premises.
• Representatives of the majority of the audited hotel indicated that there
is no policy in place to adapt to ozone friendly technologies and no
policy in place to train technicians in ozone friendly technologies.
Page 16Electricity Consumption and CO2e Emissions for the
Barbados Hotel Sector
Extrapolating the results of the CHENACT detailed audits to 96 operating hotels in Barbados
indicates that small hotels make up two-thirds of the total hotel properties, and 25% of total
electricity consumption and CO2e emissions.
Annual Electricity Annual CO2e
# of Rooms # of Hotels
Consumption (MWh) Emissions (Tons)
200 4 15,146 10,678
Total 96 81,799 57,688
Hotels larger than 100 rooms make up only 8% of the total hotel properties, but account for 25% of
total electricity consumption and CO2e emissions.
Page 17Net Savings from EE Investment for Different Sized Hotels
Hotels larger than 100 rooms could see savings of approximately $1.5 million over a 7-year period
on an investment of approximately $500,000, or a net savings of approximately $1 million.
2,000,000
1,632,107
1,483,037
1,500,000
1,165,462
Investment & Saving in US$
1,057,540
974,618
1,000,000
757,649
500,000 379,863
280,313
-
(99,550)
(500,000) (299,891)
(466,645) (508,419)
(1,000,000)
Up to 50 Rooms 51-100 Rooms 101-200 Rooms > 200 Rooms
Initial Investment (US$) Energy Cost Saving (US$) Net Saving (US$)
Assumptions: Analysis period – 7 years, Discount rate – 12%, Average electricity tariff – 0.40 US$/kWh,
Electricity annual price escalation rate – 4.5% for Barbados.
Page 18Investment and Savings from Energy Efficiency in the
Barbados Hotel Sector
US$ 20 million investment in Barbados hotel clean energy will yield US$ 50 million in net savings.
25
22.8 22.8
20 19.0
Investment and Savings in Million US$
16.8 16.3
15 13.6
10
5.9
5 3.9
0
(2.0)
-5
(6.0) (5.4)
(6.5)
-10 Up to 50 Rooms 51-100 Rooms 101-200 Rooms > 200 Rooms
Initial Investment (Million US$) Energy Cost Saving (Million US$) Net Saving (Million US$)
Assumptions: Analysis period – 7 years, Discount rate – 12%, Average electricity tariff – 0.40 US$/kWh,
Electricity annual price escalation rate – 4.5% for Barbados.
Page 19Results of PV Demonstration
• Three (3) 7 kWdc grid-tied systems have been installed at three Barbados
hotels as of October 2012.
• Systems awaiting inspection from BPL
Page 20Model Hotel Clean Energy Policy
The goal of the Model Hotel Clean Energy policy is to improve the
competitiveness and viability of the Barbados hotel sector through increased
energy efficiency and low carbon economic development.1
Policy Objectives
• Improve the energy and water efficiency of Barbados hotels –
reduced kWh (and m3 of water use) per guest night. Use hotel energy
efficiency index as the b benchmark for efficiency rating.
• Increase investment in cost-effective and proven energy efficiency
and renewable energy technologies – spending on green hotel design,
efficient A/C, refrigeration, water heating, appliances, lighting, solar hot
water, PV. Data collected from investment tax incentive filings.
• Promote voluntary reduction of GHG emissions associated with
energy use in hotels within Barbados (as model for other sectors) and
within the Caribbean (as a model for the tourism sector).
1 – The hotel clean energy policy could also qualify as a Nationally Appropriate Mitigation Action.
Page 21Impacts of a Model Hotel Clean Energy Policy
Desired Outcomes of CHENACT
• Growth in the Barbados clean energy industry (consultants, engineering
companies, equipment suppliers/distributors, service providers) – tax
revenue, employment
• Reduced operating costs for Barbados hotels - expenditures on electricity
(and water)
• Improved balance of trade for Barbados through reduced imported energy
resources – expenditures on oil imports
• Programmatic approach to reducing GHG emissions in the hotel sector as a
example for other sectors
• Greater awareness of and appreciation for energy efficiency and renewable
energy among hotel workers and the general public that can be employed in
their homes
Page 22Proposed Barbados Hotel Clean Energy Policy Instruments
Policy Instrument Proposed Intervention
Barbados Tourism Master Plan (2012-2021) The TMP should include policy support for clean, energy efficiency, low
carbon hotel development.
Tourism Development Act Establish preference for EE verses non-EE investments, increased
incentives for solar PV
Renewable energy system interconnection pilot program Standardized long term power purchase agreement
SMART Energy Fund Pre-investment grants, low interest loans tied to payback period,
performance risk sharing, upfront payments for CERs
Building code (draft energy efficiency code) Lighting, air-conditioning, hot water, appliance standards for hotel
applications
Hotel Efficiency and/or Low Carbon Rating System Voluntary rating system Promotion and marketing of “low carbon”
development in tourism sector, accreditation of “low carbon” hotel
properties
Hotel Appliance and Equipment Energy Efficiency Lighting, air-conditioning, hot water, appliance standards for hotel
Guidance applications
Hotel Clean Energy Capacity Building Training for hotel management and staff, government, and local clean
energy industry
Utility Demand Side Management (DSM) programs Recovery of utility expenditures and allowable return on investment through
rate base
Clean Energy Industry Development Amend the Fiscal Incentives Act of 1974 to allow energy efficiency
equipment suppliers manufacturers to benefit from import preferences and
tax holidays.
Clean Development Mechanism Program of Activities for National or part of regional program to structure projects so that they qualify
Hotels under the CDM or other carbon markets
Elimination of CFC and other ODS in the Hotel Sector Targeted awareness campaign for hotel owners and operators regarding
the Montreal Protocol and associated Barbados ODS policies
Page 23Energy Service Industry in the Caribbean
Caribbean energy companies are typically involved in one or more of the
following:
• Dissemination of information on energy technologies and products
• Studies such as audits and feasibility studies
• Engineering design (for more complex systems)
• Equipment supply (including manufacturers representatives)
• System integration (combining technologies and equipment)
• Electrical, plumbing, and ventilation/air-conditioning contracting
• System installation and commissioning
• Financing
• Operation and Maintenance (O&M) contracting
• Monitoring and Verification of system performance
• Technical training
• Supply of spare and replacement parts
Page 24Energy Service Companies (ESCOs)
Four different contract types are used with ESCOs:
• Shared savings contract - ESCO guarantees the cost of energy saved; the
cost savings are split for a pre-determined length of time in accordance with a
pre-arranged percentage. ESCO assumes the credit and performance risk.
• Guaranteed savings contract - ESCO guarantees a certain level of energy
savings; the performance guarantee is the level of energy saved. The client
assumes the credit risk, while the ESCO assumes the risk for the savings.
• Power Purchase Agreement – a contract between the power/energy
producer and the consumer, and single cost for customer based on an easy to
meter output, e.g., kilowatt hour or kWh. PPA provider would secure funding
for the project, maintain and monitor the energy production.
• Lease (or lease-purchase) agreement - the consumer agrees to make a
fixed payment to the ESCO for a fixed term. In addition to designing,
operating, and maintaining the improvements, the ESCO guarantees that
energy and maintenance savings from the project will exceed the payments to
the ESCO. The net effect is similar to that under a shared savings agreement.
Page 25Benefits and Pitfalls of Energy Performance Contracting
The Caribbean hotel sector is unlikely to be a market for ESCOs because
local providers are unable to provide financing and banks are not willing to
accept savings as the basis for determining debt service coverage.
Benefits Pitfalls
• ESCO finances all of the project costs, • Customer relies on ESCO in developing
including up-front engineering, energy baseline and methodology for
construction, and maintenance services. baseline adjustment (e.g., changes in
operations).
• Energy performance contracting
streamlines the purchasing process for • ESCOs can underestimate savings in
energy efficiency projects, reducing the order to ensure achieving contract terms.
cost and time required to bring energy-
• ESCO will include financing charge, as
saving projects on line.
well as fees for maintenance, monitoring
• The customer receives new and and verification.
improved lighting, cooling, and other
• Performance agreements tend to be long
equipment and the cost of this equipment
term (5 years or greater), and may only
is either fully or partially offset by
include equipment-related savings,
reduced utility bills.
thereby ignoring operational savings
Page 26Adopting Performance Contracting Principals in Caribbean Hotel Sector
Despite the limited prospects for ESCOs, some elements of performance based
service can be introduced:
• Encourage the bundling of energy services moving toward turnkey projects,
e.g., studies, engineering design, procurement, installation, commissioning,
operation and maintenance, and performance monitoring.
• Compile and disseminate information on EE equipment performance in hotel
applications and analyze expected vs. actual performance.
• Develop standardized “baseline” calculation methodologies to reflect historical
energy consumption and variations in occupancy (also relevant for CDM)
• Develop standardize contracts for energy performance contracts for hotel
applications
• Provide government guarantees for investments in selected equipment
retrofits/replacements.
• Encourage electric utilities to set up unregulated affiliates to offer performance
based services to their customers.
Page 27CDM and Building Energy Efficiency
Energy efficiency projects have had limited success in the CDM market for the
following reasons:
• Many, but individually small, reduction opportunities – Most CDM building EE
methodologies are based on single technologies (types of equipment),
whereas optimizing building EE requires many small interventions affecting
architecture, engineering, building management, building function, occupant
profiles.
• Carbon revenues are small compared to registration costs – Individual
buildings cannot generate sufficient CERs to offset cost of design, registration,
and monitoring/reporting/verification of reductions.
• Amount of carbon credits are small for each facility – Individual hotel projects
are not attractive to carbon brokers or buyers.
• CDM’s additionality requirement - Because of the fragmentation of the building
market it can be almost impossible to prove what building design would have
been selected in the absence of the CDM project. Energy efficiency
investments in existing buildings are financially attractive, but are not typically
pursued because of non-financial reasons.
.
Page 28CDM Program of Activities
CDP Program of Activities (PoA) represents a good framework for capturing
sector wide emission reductions for possible sale in voluntary markets:
• A Program of Activities (PoA) (often called Programmatic CDM) consists of
multiple, similar smaller GHG emission reduction projects, each referred to as
CDM Program Activities (CPAs).
• PoA is a voluntary coordinated action by a private or public entity which
coordinates and implements any policy/measure or stated goal (i.e. incentive
schemes and voluntary program).
• A PoA is characterized as: 1) a voluntary action, 2) implementing a policy,
measure or stated goal, 3) coordinated by a public or private entity, 4) resulting
in emission reductions or removals that are additional.
• One or more CPAs can be included under a PoA at the time of registration and
additional CPAs can be added at any point in the life of the PoA.
• A PoA can involve CPAs being run in multiple countries, in which case a
separate letter of approval would be required from each participating
government Designated National Authority (DNA) involved.
Page 29Hotel Energy Efficiency CDM Program of Activities
Recommended technologies and services be included in the Hotel CDM PoA:
• Air conditioning retrofit - inverter type variable refrigerant volume mini-splits
• Guestroom energy controls – occupancy sensors, programmable thermostats
• Public area lighting controls – occupancy sensors
• Individual lamp replacement – compact fluorescent lamps (CFL) and Light
Emitting Diode (LED) lamps
• Fluorescent tube lamps – T8 tube lamps with electronic ballasts and LEDs
• Solar hot water (SHW) heating systems
• Energy efficient freezers, refrigerators, cool rooms
• Guest room energy efficient mini-fridges, televisions
• Office and guestroom equipment – televisions, computer monitors
• Timers on pumps and motors
• Photo-sensors and timers for outdoor lighting
• Energy Management Systems
AMS-II Energy Efficiency and Fuel Switching for Buildings methodology
allows for a combination of energy efficiency technologies, including SHW
Page 30Process for Establishing a Caribbean Hotel EE PoA
1. Define the geographic scope of the PoA based on:
– Countries that have established a DNA (i.e., Antigua and Barbuda, Bahamas,
Barbados, Belize, Mexico (Cancun, Cozumel, Playa Del Carmon), Dominica,
Dominican Republic, Guyana, Jamaica, Suriname, Trinidad and Tobago)
– DNAs that confirm that a Hotel Clean Energy Program assists in achieving
“sustainable development”
– Define the EE/RE technologies and associated methodologies to be included in the
PoA, recommend using AMS-II Energy Efficiency and Fuel Switching for Buildings
2. Seek representative volunteer hotel property(ies) that will serve as the CDM
Program Activity (CPA) in the registration of the PoA.
3. Estimate the size of the PoA in terms of the cumulative CERs generated by all
future CPA participating in the PoA.
4. Establish the PoA Coordinating Entity
5. Prepare the Program of Activities Design Document (CDM-POA-DD).
6. Validation of PoA by Designated Operational Entity (DOE)
7. Application for Registration with UNFCC CDM or other carbon market
Page 31Hotel Sector Electricity Cost Share of GDP in the Caribbean
Hotel expenditures on electricity can represent more than 2% of total
national GDP in smaller countries.
3.0%
2.5% 2.4%
Hotel Sector Electricity Cost as % of GDP
2.3%
2.0%
1.7%
1.5% 1.4%
1.2% 1.2% 1.2%
1.0% 1.0%
1.0% 0.9% 0.9%
0.5%
0.5% 0.31%
0.1% 0.1% 0.2%
0.05%
0.0%
Page 32Overview of the Caribbean Hotel Sector
70,000 300
# of Rooms
60,000
# of Hotels 250
50,000
200
# of Rooms
# of Hotels
40,000
150
30,000
100
20,000
50
10,000
0 0
2,269 hotels in 25 countries/territories comprising 241,000 guestrooms
Page 33Caribbean Hotel Electricity Consumption and Potential
Savings (GWh)
Page 34Electricity Tariffs in Selected Caribbean Countries
Trinidad & Tobago 0.05
St. Kitts & Nevis 0.34
Jamiaca 0.28
Antigua 0.38
St. Vincent & Grenadines 0.36
Grenada 0.35
St. Lucia 0.33
Barbados 0.40
Dominican Republic 0.09
- 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
Electricity Tariff in US$/kWh
Note: Based on CHENACT audits, composite rates include total electricity bill divided by
consumption, Dominical Republic tariff is based on Punta Cana, other parts of the country are
up to US$0.25/kWh.
Page 35Electricity tariff determines the attractiveness of EE
investments
Caribbean Electricity Tariff Rate Simple Payback Net Present Value Internal Rate of
Territory (US$/kWh) (years) (NPV) Return (IRR)
Dominican Republic* 0.09 6.5 (22,916) 7.2%
Barbados 0.40 1.5 585,046 232%
St. Lucia 0.33 1.8 443,087 137%
Grenada 0.35 1.7 482,108 158%
Antigua 0.38 1.5 542,554 197%
Note that Dominican Republic electricity tariff is based on the private utility at Punta Cana. Electricity
rates in other parts of the DR are higher.
Page 36Caribbean is an attractive market for a number of EE/RE
measures
Electricity Cost Saved Investment
Equipment Saving (GWh) (US$ - Million) (US$ - Million) Payback Period
Air Conditioning 432 134 220 1.6
Lighting 106 31 21 0.7
Controls 97 31 49 1.6
Solar Hot Water 60 10 10 1.0
Window Film 45 12 22 1.9
Solar PV 45 13 46 3.6
Pool Pumps 25 7 4 0.6
Water pumps 10 3 1 0.5
Exhaust Fan 4 1 2 1.4
Total 824 241 375 1.6
Assumes US$0.40 per kWh electricity tariff.
Page 37Annual CO2e Emissions Reduction – Caribbean Region Hotel
Sector
300
Annual CO2 Emissions Reduction - in 1,000 tons
251.5
250
170.3
200
150
96.3
100
53.5
51.0
36.2
36.2
23.8
50
19.9
19.1
18.5
16.2
15.5
14.6
14.5
9.9
7.8
6.0
5.8
5.4
3.9
3.3
2.2
2.1
0.8
0
884 thousand tons CO2e emissions can be avoided annually through EE actions
Page 38Diesel/Heavy Fuel Oil Saved
100,000
Diesel Fuel Saved in 1,100 Liters (is this correct, or
10,000
1,000
1,000??)
100
10
1
Annually 267,970 kiloliters Diesel/HFO can be saved as a result of EE improvements in
hotels across the Caribbean region
Page 39Integrated Approach Extracts More Value from EE
Traditional Approach CHENACT Approach
1. Scope (low/no-cost only) 1. Scope (all cost-effective)
2. Technologies(locally available) 2. Studies (audits, feasibility
studies)
3. Procurement (price driven)
3. Financing
4. Installation (in-house or local
contractors) 4. Technologies (advanced)
Electricity savings: 5-10% 5. Procurement (EE rating)
6. Installation (trained,
outsourced)
7. Operation and maintenance
8. Monitoring
9. Revenue from CERs
Electricity savings: 20-30%
Page 40Benefits of CHENACT
Before CHENACT After CHENACT
• Hotels complain about high electricity • Hotels benchmark their electricity to see
bills relative efficiency
• EE improvements done incrementally • EE improvements identified through
detailed energy audits
• Technology application based on local
market and word of mouth • Proven innovative technologies sourced
from global suppliers
• Investment made from cash flow, low
cost options only • Attractive financing available allowing
larger retrofit investments
• Hotels unable to calculate savings (kWh
and $) and return on investment • Hotels compare investments in
increased efficiency to increased room
• Hotel industry without access to carbon
revenue
revenues and associated marketing
benefits • Hotels participate in voluntary carbon
emission market
Page 41Topics
Summary of CHENACT accomplishments
Summary of CHENACT findings
Summary of CHENACT lessons learned
CHENACT Action Plan
Page 42Summary of CHENACT Phase 1 Lesson Learned
While CHENACT Phase 1 successfully demonstrated the potential for clean
energy investment and emissions reduction, realization of the regional
potential will require successful implementation in Barbados as well as large
(e.g., DR, Jamaica, Bahamas) and small (OECS) markets
Period of Performance (11 months) was not sufficient achieve and disseminate
results given the scope and complexity of CHENACT.
Significant delays experienced in completing some detailed hotel audits/reports
due to challenges in getting hotel energy/occupancy data and delays in
preparing audit reports.
Delays in the PV demonstration was due to unfamiliarity with IADB
procurement process and limited response to bid.
SMART Fund must address hotel industry barriers to investments, e.g.,
collateral requirements, lack of confidence in financial returns of EE
investments.
It is unlikely that CHTA, CAST and CTO will be effective advocates for
CHENACT implementation without additional in-house technical expertise or
program implementation partner(s).
Page 43Topics
Summary of CHENACT accomplishments
Summary of CHENACT findings
Summary of CHENACT lessons learned
CHENACT Action Plan
Page 44CHENACT Action Plan
Recommended Action Organizational Organizational
Responsibility in Barbados
Responsibility Outside
Barbados
Share findings of energy audits and project results to members BHTA CHTA, CSHAE
Promote EE as a means of reducing electricity bills BLP, BDET, BHTA CARILEC, CHTA
Support the implementation of a model Hotel Clean Energy Policy BMOE, BMOT, BDOET CTO, CARICOM Energy
Unit, OAS
Promote hotel loan application to the Smart Fund EGFL, BHTA, BDOET, BMOT None
Incorporate “carbon neutrality” as a goal of the Tourism Master Plan. BMOT, BDOET, BHTA CTO, CHTA, CCCCC
Propose revision to the Tourism Development Act to include additional BMOT, BHTA CTO
incentives for energy efficiency (EE) and renewable energy (RE)
Review the experience of the CHENACT PV pilot demonstration and BLP, BDOET, BHTA None
prepare a proposal for expanding to other hotels
Propose a specific guidelines for adopting the Building Energy BHTA, BNSI None
Efficiency Code for hotels
Develop an energy efficiency rating system for hotels BHTA, BMOT, BDOET, BOE None
Adopt an energy-efficient appliance rating system BHTA, BNSI, BDOET CHTA, CARICOM CROSQ
Accelerate a training and capacity building program for EE and RE BMOT, BDOET, BHTA, BCC UWI, CHTA
technologies, applications and practices in the hotel sector
Research and advocate for incentives to electric utilities to finance and BLP, BDOET CARILEC, CARICOM
implement demand-side management programs for the hotel sector Energy Unit
Investigate CDM Program of Activities for Hotel EE applications BHTA, BMOE, BMOT, CHTA, CTO, CAST,
BDOET CARICOM Energy Unit
Accelerate the elimination of CFCs and other ozone-depleting BMOE, BMOT, BHTA UNEP, CTO
substances in the hotel sector
Identify energy equipment and service providers willing to guarantee BHTA CHTA
performance or finance energy savings projects
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